The Impact Of China's Foreign Direct Investment In The Infrastructure Sector On Economic Growth In Algeria

This paper attempts to examine the Impact of China's Foreign Direct Investment in the Infrastructure Sector on Economic Growth in Algeria.Foreign Direct Investment(FDI)plays a fundamental part in the development and economic growth of a country.Many developing countries rely seriously on FDI to promote their economy as they face capital deficiency for their development process.According to many scholars,FDI not only brings in capitals and technology,but also skills into developing countries.And helping the countries to grow faster by satisfying the country's needs.Foreign direct investment is becoming more important for developing countries,which are often based on the assumption that greater inflows of FDI will bring certain benefits to their economy.FDI has great economic effects for the host countries.FDI can play an important role in Algeria development efforts,including employment generation and growth,integration into the global economy,transfer of modern technologies,enhancement of efficiency,and raising skills of local manpower,however,the way to get FDI to the country differs from one country to another according the openness of the economy.So Algeria has to have a strong potential to attract more China's FDI in other areas rather than relying only on natural resources.The study is focused on the issue of China's foreign direct investments in the infrastructure sector in Algeria and their impact on economic growth.The aim of the study is to test the importance of Infrastructure for Economic Growth,in a creation of Jobs,and Access to Markets and Services,From air and marine transport links,to good roads,telecommunications and energy generation,all are needed for provision of reliable services,and to enable local businesses to grow and expand,a larger stock of infrastructure is thought to fuel economic growth by reducing the cost of production and transportation of goods and services;by increasing the productivity of input factors;and by creating indirect positive externalities.Infrastructure plays a key role in facilitating trade,especially since recent trade liberalization in Algeria,This study quantifies the impacts China's FDI of infrastructure on growth economic in Algeria and trade volume as well as on various economic growth indicators.that improvements in transport infrastructure(i.e.,the road density network,air transport,railways,ports,and logistics)have resulted in increased trade flows.Evidence from China.The prevalent view in the economics literature is that a high level of infrastructure investment is a precursor to economic growth.China is especially held up as a model to emulate.